116th Congress S.A. 79
2nd Session
To amend S.3302
IN THE SENATE OF THE UNITED STATES
April 22, 2020
Mr. Romney (for himself) introduced the following amendment
IN GENERAL.— The Global Health Security Act of 2020 is amended by adding the following after Sec. 10. Authorization of Appropriations—
SEC. 11. BUSINESS STABILIZATION DIRECT LOAN PROGRAM.
(a) In General.—The Administrator of the Small Business Administration shall carry out a program to make loans directly to eligible borrowers.
(b) Eligible Borrower Defined.—In this section, the term “eligible borrower” means a person who—
(1) is a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632); and
(2) is located in a State or territory of the United States with a confirmed or presumed positive case of COVID–19.
(c) Use Of Funds.—In addition to the use of proceeds currently permitted under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), loans made under this section may be used for the following purposes:
(1) To make periodic payments of principal and interest, for a period not to exceed 12 months, on a loan or a loan guarantee made to an eligible borrower that meets the eligibility standards of such section 7(a).
(2) To provide benefits to employees of the eligible borrower, including group life insurance, disability insurance, sick leave, annual leave, educational benefits, paid family leave, or retirement benefits (including a pension plan or IRA).
(3) To pay wages to employees of the eligible borrower, and related State and Federal payroll taxes, except that loan proceeds may not be used to pay amounts under a garnishment order issued by an agency of a State or Federal Government.
(4) To provide technology, hardware, or software for a shift to telework or remote work for employees of the eligible borrower to enable continuity of operations.
(5) To pay rent or utilities due or owed on any place of business of the eligible borrower.
(6) To refinance an existing debt (including interest) in an amount not to exceed 50 percent of the amount of the debt.
(7) To provide floor plan financing or other revolving line of credit.
(8) To pay past-due Federal, State, or local payroll taxes, sales taxes, or other similar taxes that are required to be collected by the eligible borrower and held in trust on behalf of a Federal, State, or local government entity.
(9) To provide employees and patrons of the eligible borrower with the necessary items specified by any public health authority to mitigate the spread of COVID–19.
(d) Loan Terms.—
(1) AMOUNT.—Loans made under this section may not exceed $2,500,000.
(2) DISBURSEMENT.—Not less than 10 percent, but not more than 20 percent, of the proceeds of a loan made under this section shall be disbursed not later than 5 calendar days after a loan is approved under this section.
(3) TERM.—Loans made under this section shall be for a term of 10 years, and a borrower shall not be required to repay such loan during the 12-month period beginning on the date of disbursement of the loan.
(4) INTEREST; FEES.—The Administrator may not charge any interest rate exceeding 5%
(e) Collateral.—The Administrator shall not decline to make a loan under this section to an otherwise eligible borrower if their collateral exceeds 30% of the amount of the loan. The Administrator shall accept any available collateral, including subordinated liens, to secure a loan made under this section.
(f) Sunset.—
(1) IN GENERAL.—Except as provided in paragraph (2), the Administrator of the Small Business Administration may not make a loan under this section after September 30, 2022.
(2) EXTENSION.—The Administrator may extend authority to make loans under this section by an additional 6 months by notifying Congress, in writing, within 10 calendar days before any extension.
(h) Emergency Rulemaking Authority.—
(1) IN GENERAL.—Within 15 days after the date of the enactment of this section, the Administrator of the Small Business Administration—
(A) shall issue rules to carry out this section; and
(B) may issue rules to establish a secondary market for loans made under this section.
(2) NOTICE.—The notice requirements of section 553(b) of title 5, United States Code shall not apply to any issuance of rules under paragraph (1).
(i) Authorization Of Appropriations.—There is authorized to be appropriated to the Administrator of the Small Business Administration such sums as may be necessary to pay for the cost of making $30,000,000,000 in direct loans under this section. In the previous sentence, the cost of direct loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a).
SEC. 12. ECONOMIC INJURY DISASTER LOANS.
(a) Terms.—With respect to a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19, the Administrator of the Small Business Administration—
(1) may make such a loan to a start-up small business concern;
(2) may waive any rules related to affiliation; and
(3) shall, with respect to such a loan made to a cooperative, waive any requirement that the borrower of such loan provide a personal guarantee to repay such loan.
(b) Preliminary Amounts.—
(1) IN GENERAL.—An applicant for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance in the amount requested by such applicant (not to exceed $10,000) to such applicant within 3 days after the Administrator receives an application from such applicant.
(2) VERIFICATION.—Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is a small business concern (as defined under section 3 of such Act (15 U.S.C. 632)).
(c) Approval And Ability To Repay For Small Dollar Loans.—With respect to a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 that does not exceed $100,000, the Administrator—
(1) may approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or
(2) may not use alternative appropriate methods to determine an applicant’s ability to repay.
(d) Emergencies Involving Federal Primary Responsibility Qualifying For Small Business Administration Assistance.—Section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is amended—
(1) in subparagraph (A), by striking “or” at the end;
(2) in subparagraph (B), by striking “or” at the end;
(3) in subparagraph (C), by striking “or” at the end;
(4) by redesignating subparagraph (D) as subparagraph (E);
(5) by inserting after subparagraph (C) the following:
“(D) an emergency involving Federal primary responsibility determined to exist by the President under the section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5191(b)); or”;
(6) in subparagraph (E), as so redesignated—
(A) by striking “or (C)” and inserting “(C), or (D)”;
(B) by striking “disaster declaration” each place it appears and inserting “disaster or emergency declaration”;
(C) by striking “disaster has occurred” and inserting “disaster or emergency has occurred”;
(D) by striking “such disaster” and inserting “such disaster or emergency”; and
(E) by striking “disaster stricken” and inserting “disaster- or emergency-stricken”; and
(7) in the flush matter following subparagraph (E) (as so redesignated), by striking the period at the end and inserting the following: “: Provided further, that for purposes of subparagraph (D), the Administrator shall deem that such an emergency affects each State or subdivision thereof (including counties), and that each State or subdivision has sufficient economic damage to small business concerns to qualify for assistance under this paragraph and the Administrator shall accept applications for such assistance immediately.”.
(e) Credit Elsewhere Requirements.—The flush matter following subparagraph (E) (as so redesignated) of section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is amended by striking “That no loan or guarantee” and all that follows through “credit elsewhere.” and inserting the following: “The interest rate on a loan or guarantee made under this paragraph shall be not more than 5 percent, if the Administrator determines the applicant is not able to obtain credit elsewhere, or not more than 6 percent, if the Administrator determines the applicant is able to obtain credit elsewhere.”.
(f) Eligibility.—Section 7(b)(2) of the Small Business Act is amended by striking “small agricultural cooperative” and inserting “small cooperative”.
(g) Additional Amounts.—
(1) IN GENERAL.—The Administrator of the Small Business Administration may increase by 2 percent the amount received by an eligible small business concern under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) to cover continuity-of-operations and risk mitigation improvements, including telework capability, offsite record keeping, redundancy, the administrative costs of establishing paid sick leave, and presenteeism prevention.
(2) DEFINITION.—In this section, the term “eligible small business concern” means a small business concern that—
(A) meets the applicable size standard established under section 3 of the Small Business Act (15 U.S.C. 632); and
(B) is receiving assistance under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) related to COVID–19.
(h) Authorization Of Appropriations.—There is authorized to be appropriated to the Administrator to carry out the loan program under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))—
(1) $90,000,000 for administration costs; and
(2) $10,000,000,000 to provide loans or other assistance.
SEC. 13. MAXIMUM LOAN AMOUNT FOR 504 LOANS.
(a) Purpose.—The purpose of this section is to make refinancing of fixed assets more flexible for small business concerns seeking immediate financing and relief from the COVID–19 crisis.
(b) Temporary Increase.—During the period beginning on the date of enactment of this section and ending on September 30, 2021, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this section, the maximum loan amount shall be $20,000,000.
(c) Permanent Increase For Small Manufacturers.—Effective on October 1, 2021, section 502(2)(A)(iii) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by striking “$5,500,000” and inserting “$7,000,000”.
SEC. 14. PROVIDING ADDITIONAL LIQUIDITY FOR SMALL-BUSINESS LOANS
(a) Purpose.—The purpose of this section is to provide the Federal Government with additional liquid assets which can then be used to finance loans for small-businesses, micro-businesses, and individuals struggling with the effects of COVID-19, as well as other appropriations that are in the interest of the Federal Government.
(b) Temporary Increase.—During the period beginning on the date of enactment of this section and ending on September 30, 2021, the following amendments are enacted—
- 26 USC Ch. 51 § 5001 is amended by striking “$2.70 per proof gallon in the case of distilled spirits” and replacing it with “$2.90 per proof gallon in the case of distilled spirits”.
(B) 26 USC Ch. 1 section (j) subsection (5) is amended by striking “$77,200” and replacing it with $74,000”.
(C) 26 USC Ch. 2 §1401 subsection (b) is amended by striking “in the case of a joint return, $250,000” and replacing it with “in the case of a joint return, $200,000”.
(c) Permanent Increase
(A) 26 USC Subtitle A, Chapter 1, Subchapter J, Section (c), Subsection (2) is amended by striking “shall be zero” and replacing it with “shall be $10,000”.
(B) Section 216(l) of 42 U.S.C. 416(l) Paragraph 1 Subparagraph E is amended by striking “67” and replacing it with “75”.
(C) Section 216(l) of 42 U.S.C. 416(l) Paragraph 2 is amended by striking “62” and replacing it with “70”.
(D) 26 USC Subtitle A, Chapter 1, Subchapter J section (c), subsection (4) is amended by striking “If a portion of an electing small business trust ceases to be treated as a separate trust under paragraph (1), any carryover or excess deduction of the separate trust which is referred to in section 642(h) shall be taken into account by the entire trust.”
SEC. 15. GRANTS TO SMALL BUSINESS DEVELOPMENT CENTERS, WOMEN’S BUSINESS CENTERS, AND CHAPTERS OF THE SERVICE CORPS OF RETIRED EXECUTIVES.
(a) In General.—The Administrator of the Small Business Administration shall provide grants to small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives for the purposes described in subsection (b).
(b) Use Of Funds.—Grant funds under this section shall be used for the following:
(1) To purchase laptops, software, and other related technical or electronic equipment to ensure that employees of small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives may telework and provide remote customer service in response to a public health emergency declared because of COVID–19.
(2) To create marketing materials for employees of small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives to educate customers on available training and counseling resources relevant to a public health emergency declared because of COVID–19.
(c) Definitions.—In this section:
(1) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Small Business Administration.
(2) SERVICE CORPS OF RETIRED EXECUTIVES.—The term “Service Corps of Retired Executives” means the Service Corps of Retired Executives established under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)).
(3) SMALL BUSINESS DEVELOPMENT CENTER.—The term “small business development center” has the meaning given in section 3 of the Small Business Act (15 U.S.C. 632).
(4) WOMEN’S BUSINESS CENTER.—The term “women’s business center” means a women’s business center as described under section 29 of the Small Business Act (15 U.S.C. 656).
(d) Authorization Of Appropriations.—There is authorized to be appropriated $500,000,000 to the Administrator to carry out this Act, of which not less than $100,000,000 shall be used for grants to women’s business development centers.
SEC. 16. GRANT PROGRAMS FOR SMALL BUSINESS DEVELOPMENT CENTERS, WOMEN’S BUSINESS CENTERS, AND CHAPTERS OF THE SERVICE CORPS OF RETIRED EXECUTIVES.
(a) Small Business Development Center Grants.—
(1) SMALL BUSINESS DEVELOPMENT CENTER GRANTS.—The Administrator of the Small Business Administration shall provide grants to small business development centers (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) for the purposes described in paragraph (2).
(2) USE OF FUNDS.—Grant funds under this subsection shall be used to educate, train, and advise owners and employees of small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)) on the following matters:
(A) The hazards of and prevention of the transmission and communication of COVID–19 and similar communicable diseases.
(B) The potential effects to the supply chains, distribution, and sale of products of the concern, and the mitigation of such effects, during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(C) Any other relevant business practices necessary to mitigate any economic effects experienced during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(3) FORMULA.—The Administrator and the association authorized under section 21(a)(3)(A) of the Small Business Act (15 U.S.C. 648(a)(3)(A)) shall jointly establish a formula under which grants under this subsection shall be awarded.
(4) METRICS AND GOALS.—
(A) IN GENERAL.—The Administrator and the association described in paragraph (3) shall jointly establish goals and metrics for the use of funds made available under this subsection. Such goals and metrics shall—
(i) consider the extent of the circumstances relating to the spread of COVID–19 or a similar communicable disease that affect small business concerns served by each grant recipient, particularly rural areas or economically distressed areas;
(ii) ensure grant recipients comply with the requirements of paragraph (2) while also ensuring that grant recipients may have flexibility in responding to unique situations; and
(B) PUBLIC AVAILABILITY.—The Administrator shall make publicly available the methodology by which the Administrator and the association jointly developed the metrics and goals described in subparagraph (A).
(5) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated $300,000,000, to remain available until expended, to the Administrator to carry out this subsection.
(b) Establishment Of Women’s Business Center And Service Corps Of Retired Executives Grants.—
(1) IN GENERAL.—The Administrator of the Small Business Administration shall provide grants to women’s business centers (as described under section 29 of the Small Business Act (15 U.S.C. 656)) and to chapters of the Service Corps of Retired Executives (established under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B))) for the purposes described in paragraph (2).
(2) USE OF FUNDS.—Grant funds under this subsection shall be used to educate, train, and advise owners and employees of small business concerns on the following matters:
(A) The hazards of and prevention of the transmission and communication of COVID–19 and similar communicable diseases.
(B) The potential effects to the supply chains, distribution, and sale of products of the concern, and the mitigation of such effects, during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(C) The management and practice of telework or remote customer service by electronic or other means to reduce possible transmission of COVID–19 and other communicable diseases.
(D) The risks and mitigation of cyber threats in remote customer service or telework practices.
(E) The mitigation of the effects of reduced travel or outside activities during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(F) Business continuity plans during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(G) Any other relevant business practices necessary to mitigate any economic effects experienced during a period of a public health emergency declared because of COVID–19 or a similar communicable disease.
(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated $50,000,000, to remain available until expended, to the Administrator to carry out this section.
(c) Report.—Not later than 6 months after the date of enactment of this section, and annually thereafter until the amounts authorized in subsection (a)(5) and subsection (b)(3) have been expended, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that—
(1) describes, with respect to the initial year covered by the report, the programs and services developed and provided by the Administrator, small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives in response to a public health emergency declared because of COVID–19; and
(2) describes, with respect to the subsequent years covered by the report—
(A) the efforts of the Administrator, small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives to develop services to assist small business concerns affected by COVID–19;
(B) the challenges faced by owners of small business concerns in accessing services provided by the Administrator, small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives in response to a public health emergency declared because of COVID–19;
(C) the number of unique small business concerns that were served by the Administrator, small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives under the programs established by this section; and
(D) other relevant performance data with respect to small business concerns affected by COVID–19, including the number of employees affected, the effect on sales of the concern, any disruptions of supply chains, and the efforts made by the Administrator, small business development centers, women’s business centers, and chapters of the Service Corps of Retired Executives (as applicable) to mitigate these effects.
No comments:
Post a Comment